Police arrest man on counterfeit bills

Federal Reserve and Treasury Seals: On a genuine bill, the Federal
Reserve and Treasury seals are clear, distinct and sharp.

Border: The fine lines in the border of a genuine bill are clear
and unbroken. On the counterfeit, the lines in the outer margin and
scrollwork may be blurred and indistinct.

Serial Numbers: Genuine serial numbers have a distinctive style and
are evenly spaced. On a counterfeit, the serial numbers may differ in
color or shade of ink from the treasury seal. The numbers may not be
uniformly spaced or aligned.

Paper: Genuine currency paper has tiny red and blue fibers embedded
throughout. Close inspection reveals, however, that on the counterfeit
note the lines are printed on the surface, not embedded in the
paper.

Source: Secret Service

A Rockport man was arrested Thursday evening and accused of paying area
retailers with counterfeit bills, Rockport police said Friday.

Manuel Alvarez Iwabuchi was arrested on charges of forgery by
passing counterfeit bills and narcotics possession. Iwabuchi, 45, had
70 $100 counterfeit bills and two grams of heroin at the time of his
arrest, police said. He is being held at the Aransas County Jail on a
combined $500,000 bond and may face federal charges.

Sgt. Larry Sinclair said the investigation started two months ago
when banking institutions began detecting counterfeit bills coming from
Rockport merchants. The police department receives less than 10 calls a
year about counterfeit bills, but about a dozen calls came in between
September and Thursday, he said.

"It's still too early to tell where the counterfeiting originated,
but the investigation is ongoing," Sinclair said. "The Secret Service
has been called in to assist with the investigation."

A spokesman for the Secret Service confirmed the agency is assisting
the police department.

Merchants usually detect counterfeit bills when they use a
counterfeit detection pen that turns the amber-colored ink black on the
bill. Bank counterfeit detectors are more sophisticated and detected
the counterfeit bills merchants missed.

Sinclair said he believes the bills used in Rockport were $5 bills
that were laundered, using chemicals to remove the ink, and reprinted
as $100 bills.